Studied by 24 people
develop understanding on how these businesses operate, identifying their strengths and weaknesses
planning consider how they can achieve lower costs or implement strategies to distinguish themselves and develop competitive advantage
access larger and more diverse customer base, allowing a business to reduce its dependence on its local market
essential for business owner to be aware of different customer needs and cultural expectations
may need to adapt products to suit customer needs in different locations
involves business moving its services or processes to another country
should consider time zone differences, as it can disrupt business processes
reasons why businesses consider offshoring labour
legal & government regulations: consider legal and government regulations in the offshoring country, as tax wages and minimum wages may differ
communication & cultural barriers: language spoken & level of English may differ; must consider cultural norms
business reputation: sending labour overseas may have impact on increasing unemployment rate in local economy and harm reputation
each day, value of country can fluctuate, therefore business must anticipate changes
exchange rates - relative price at currency of country can be exchanged for currency of another country
Currency appreciation: increase in value of currency against foreign currency
beneficial for Australian business that purchases materials from overseas countries as its Australian dollars ca buy more of a foreign currency
make business’s goods and services more expensive for overseas buyers - less attractive
Currency depreciation - decrease in value of currency
increase cost of imports
cheaper for overseas buyers - attractive in overseas markets
involve buying and selling goods and services using the internet (e-commerce)
reach wider range
policies and processes - shipping, refunds, returns
protected by cyber attacks - breach of privacy resulting in loss of customer trust
exclusive right to control use of creative use
not engaging in copyright infringement - result in fines and penalties
exclusive right granted over unique aspect of business
original and unique to avoid trademark infringement - no reproduction of unauthorised materials
exclusive rights to use innovative devices, substances, methods and processes
protect invention from competitors
amount charged, expressed as percentage of principal, by leader to borrower for use of assets
loans - taken out for initial costs
interest rates low - business loans less expensive
interest rates high - pay more for amount borrowed
percentage of labour force working in paid emplotment
availability of workers - influence wages to attract workers
unemployment rates low - employment levels high
unemployment rates high - employment levels low
percentage of income or spending required to be paid to government
tax obligation - budget for additional business expenses
companies required to pay 25%-30% of profit
measure of consumers’ feelings and expectations about current and future economic conditions
when high - more confident in spending
when low - less confidence in spending
obligations employers and employees
include minimum wages, fair working conditions
against unfair dismissal and aims to resolve workplace disputes
protect environment - minimise energy use, reducing water use, reusing recycling, and reducing waste
businesses’ impact on environment and protect limited resources
rules specific to businesses within certain industry
permits or licences relevant to business industry
eg. Working with Children Check
obtain Australian business number (ABN) - identifies business
apply for tax file number (TFN) to the Australian Taxation Office (ATO) - allows business to be easily identified for taxation purposes
usually work quicker, producing more in shorter period of time
complete more complex and dangerous tasks than human labour
more accurate - less mistakes and less errors/defects
loss of employee’s jobs - replaced & decrease reputation of business
expensive in short-term
difficult to customise for individual customer needs
CSR
ethical conduct of business - above and beyond legal obligations
local suppliers instead of overseas - reduces distance - lowering carbon emissions
waste management strategies - recycling and reusing excess materials - less landfill
eliminate non-environmentally friendly packaging
use renewable sources of energy
local suppliers instead of overseas suppliers - provide employment to locals and boosting local economy
assist employees when technology replaces them - reduces unemployment and minimising social issues
encourage volunteer creating a positive impact on improving various social issues
positive business reputation
attract highly skilled employees who value ethical conduct
attracts motivated employees
production process more efficient
customers willing to pay more for ethically produced goods and services
decrease productivity levels because of constant focus
employees feel overwhelmed to adapt new practices
time-consuming
initially expensive
customers expect business to respond to queries promptly
business ensure customers able to interact with business in order to earn customer loyalty
same or similar industry that offer similar good/service
when planning business - owner consider behaviour of competitors to establish competitive advantage
investigate strengths and weaknesses of competitors and take advantage of weaknesses
continuously innovate in industry
organisations who represent and speak on behalf of employees in particular industry to product and improve wages and working conditions
represent and defend employees when issues arise in workplace (eg. discrimination)
businesses who do not apply with union requests may face significant consequences
union can legally organise employee strike - negative public reputation
advise and support businesses in particular industry
provide information through training programs, seminars, conferences, or personal consultations
advocate for production of environment and promote environmental issues to businesses, government and public
operate in manner that is harmful to environment, often campaign to public and government to prohibit business from continuing its operations
